The Key to Success

This week I had the opportunity to tour First Choice Computer Recycling. Greg, Bobbie, and Shane, the owners, took time from their busy schedules to show their facility and explain what contributes to their success. Last year they moved from their cramped location to a building which seemed almost too big. Ten months later, they have outgrown the building and have planned a 23,000 square foot addition with a basement.

The three began the business eight years ago when recycling computers in the United States was virtually nonexistent. Greg related that they were told, “You can’t recycle computers in this country.”

That attitude did not deter them. They saw a future in computer recycling and discovered storage units and garages full of pent-up computers to recycle. They invested long hours in starting the business, runnning it, and, as the sole employees, dismantling all the computers, too.

Although their initial “sweat equity” helped launch the business, it is not responsible for their success. With thirteen employees, the three rarely tear down computers today. Now each focuses on his or her area: Shane oversees the plant; Greg deals with the buying and selling; and Bobbie manages the office. The key to their success is their expertise in each of these areas.

Greg stays on top of the commodities markets and decides when to sell the metals which are stripped from the items. His knowledge of scrap metal, commodities, and the buy-sell process makes the difference between profit and loss. Shane works to keep the plant running effectively. His knowledge of how to tear items apart efficiently with maximum preservation of the parts determines their value and their labor expense. Bobbie runs the office and oversees the marketing and accounting. Her knowledge keeps the firm compliant with required paperwork and balances revenues and expenses.

Their knowledge as well as their entrepreneurial spirit are the basis of their success. What sets them apart is their drive to continue learning so that they may grow their business. This fits right in with researchers’ findings that what matters most in the economy of a country is not the availability of land, labor, and capital. No, it’s the other two factors of production that determine a vibrant economy. They are entrepreneurship and knowledge.

I think these also determine the success or failure of a business.

Successful entrepreneurs risk, but they manage their risk. Successful entrepreneurs also seek knowledge. They don’t just seek it before they open a business; they continually want information that will help them run their businesses more profitably. They acquire knowledge wherever they can find it: from others, the Internet, workshops, reading, and classes.

I know that in the daily routine of doing business, taking time to increase your knowledge may seem to be a low priority. That’s not so. Successful business people such as Bobbie, Greg, and Shane will tell you that knowledge makes the difference between success and failure, profit and loss.

What have you done lately to expand your knowledge?